Uncertainty has emerged around the proposed sale of Kazakhstan’s Tokhtar gold project, which hosts more than one million ounces of gold resources. Aurora Minerals Group, the company that prepared the asset for the transaction, has publicly clarified the scope of its work and explained why responsibility for the current delay lies elsewhere.
The issue gained attention after it became known that no application for the transfer of subsoil use rights had been submitted to the relevant government ministry. Aurora stated that it had fully met all of its contractual obligations. The company’s responsibilities included geological support, investment packaging, asset promotion, and transaction structuring. According to Aurora, its team successfully advanced the project to substantive commercial negotiations with a specific buyer.
The Tokhtar project was actively promoted at international industry events. It was showcased at the PDAC conventions in 2023 and 2024 and presented to more than 25 major mining and investment companies worldwide. According to Aurora, potential investors were not discouraged by legal concerns but by technical challenges. Key issues included complex ore processing requirements, difficulties in gold recovery, and high arsenic content within the ore.
The company that ultimately demonstrated serious interest in the project was Solidcore Resources. Aurora noted that Solidcore possesses practical experience with similar refractory ores at the Bakyrchik deposit, making it a strong candidate for successful development of the asset.
As part of the transaction preparation process, Aurora assembled a comprehensive geological database, completed wireframe and block modeling, conducted asset valuation, and prepared all necessary analytical and legal documentation. The company considers this work to have been carried out professionally and in good faith. However, Aurora emphasized that submitting applications for regulatory approval was not within its scope of responsibility. That task falls to the direct parties involved in the transaction. The proposed deal reportedly involved the acquisition of a 51% interest in the project for approximately $25 million.
The company also stressed the importance of understanding how regulatory procedures are conducted in Kazakhstan. Transparent and predictable approval processes, Aurora argued, play a critical role in maintaining the confidence of international investors in the country’s mining sector.
With its public statement, Aurora Minerals has sought to clarify its role and draw a line under questions regarding its responsibilities. The future of the transaction now depends on the parties to the deal and the relevant government authorities. Their actions will determine whether the million-ounce Tokhtar project ultimately moves forward toward development.
Source: inbusiness.kz
